I am buying new computers so how should I license my software for them?

The simple answer to this question is: send me your list of requirements and I will send you the answers. Note that is plural, as each software product you consider has multiple possibilities for licensing. Not to mention that for each type of application there are multiple brands and multiple versions.

We often find companies running the wrong version of an application and struggling with features they need but do not have access to.

There are good reasons for the different versions of the software existing but it is important to understand your requirements and preferences.

Your high level choices, once you have chosen your product are:

• OEM (this implies it is supplied by the hardware manufacturer with the original equipment possibly pre-installed).
• Educational: for organisations involved in education (this can include religious groups and training organisations in some cases).
• Box Product: this is standard licensing available off-the-shelf at retail outlets.
• Volume Licensing: usually purchased as a single disk or download with multiple licenses sold by software resellers.
• Rental programs such as Open Value Licensing: here the software is paid over an extended period or by the year, this can assist organisations that need to conserve cash.
• Subscription licensing by the month or by the year: this is ‘pay as you use’ and works well where it is available, typical with software as a service solutions (SAAS).
  

There are many other models and each have their advantages and disadvantages. Software companies run training courses for resellers, as we do at Combo, so that our staff understands the pros and cons of the various models. We spend several days every year keeping up-to-date with the industry changes so that we can work with our clients to provide the right advice.

Most computers come with the offer of OEM software which the box sellers like because it increases their revenue. Just taking the OEM software that comes with the computer will be the cheapest by purchase price, but may leave you in strife with license management or upgrade options in the future – this is where volume licensing provides a benefit.

The best solution will depend on the size of your organisation, your cash position, the number of licenses you require and the licensing management systems you have in place for tracking usage through your organisation.

David Markus is the founder of Melbourne's IT services company Combo. His focus is on big picture thinking to create value in IT systems for the SME sector.